The Hamon law is no longer a project. Validated by the Constitutional Council on March 14, the President of the Republic, François Hollande promulgated the day before yesterday and here it is definitively listed in the Official Journal under ” Law 2014-344 of March 17, 2014 relating to consumption “.
Behind this name hides a series of measures that will really change the daily lives of French people: indication of the origins of meats, sale of pregnancy tests in supermarkets, payment of parking for a quarter of an hour… But THE interesting measure for future owners it is the possibility of changing loan insurance for a whole year after signing your credit.
Lite Lender returns to this last point which will certainly allow you to save money.
What is borrower insurance used for?
Borrower insurance known as “disability death insurance” is the sine qua non condition for obtaining a home loan. It allows the borrower to continue to repay his credit even if he encounters great financial difficulties. As this service is compulsory, banks generally offer a credit-insurance “package”.
Why choose two different products in the same establishment?
However, insurance and loan are not the same products and since the Lagarde law of 2010 nothing obliges borrowers to subscribe them together. Customers would even have every advantage to compare insurance as well: for a loan of $ 200,000 over 20 years their cost in fact represents $ 14,400 when it amounts to $ 10,800 for a loan of $ 150,000 over the same period.
Unfortunately, if borrowers generally think of comparing loans, once the best rate is found, they adopt the package forgetting that it could still lower the price of their loan by comparing insurance.
Not to mention the banks which increase their rates if the customer leaves to choose his insurance elsewhere. Result, “today 7 out of 10 insurances are still taken out with the bank which establishes the bank loan ” deplores Maël Bernier, spokesman for Borrowing.
What will the Hamon law change?
To remedy the problem, Benoît Hamon introduced a real change: a period of one year after obtaining credit to change borrower insurance. Thus, more possibility for banks to increase the rates of their credit since it has already been signed.
For Maël Bernier it is ” a small revolution ! “. Borrowers can indeed be much more serene at the signing of the credit: not only will they be able to renegotiate this credit for years but they will also now be able to change the insurance for one year. Please note, however, that the measure will not take effect until July 26, 2014. Until then, compare your credit insurance… before!
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